C-store tech transformation: Do's, don'ts, tips, strategies

As technology improves, so do opportunities for convenience retail services in environments that have not traditionally offered them. That statement, from an article by Elliot Maras, editor of Kiosk Marketplace and Vending Times, provides a clear prospective of what's happening with convenience stores.

To put it simply, the c-store retail environment is one of transformation as well as constantly changing consumer behavior.

Very little stays the same for a c-store owner or operator given a wide range of factors impacting the industry — inflation and prices are top issues, according to a study from PDI Technologies and GasBuddy. The report also revealed c-stores are fast becoming retail locations and consumers not only expect efficiency in the purchase and checkout but are still expecting an excellent physical experience.

The U.S. Commerce Department recently reported a 0.6% increase in retail sales which was largely driven by spending at gas stations. Increasing store traffic means c-stores have a chance to create enhanced touch points, drive lasting brand loyalty and pump up the bottom line.

And many a c-store is doing just that. 7-Eleven Inc. plans to build one of the largest electric vehicle fast-charging networks of any retailer in North America.

A Clearwater, Florida gas station is piloting self-ordering technology that aims to help c-stores and fueling stations enhance the customer experience, increase the purchase level and increase profitability all while a customer is at the pump.

To gain insight on what c-stores are doing to enhance the shopping experience, RetailCustomerExperience reached out in an email interview to Michael Jaszczyk, chief digital transformation officer at GK and CEO of GK Americas. GK is a global cloud services provider for retailers. Jaszczyk has extensive experience in software development for the retail industry and as a manager in international IT companies, including MCRL AG, Pironet AG and SA2 Retail AG. He joined GK Software SE in late 2010 to lead the OpenScale business before being appointed CTO (until 2018) and CEO of GK Software USA in November 2011.

As Jaszczyk shared, a big key to deploying c-store technology to boost the customer experience, whether it's at the pump, in the aisle or at the checkout, is to avoid rushing in blindly without keeping customers in mind.

Q. So, the shopping experience at a convenience store has undergone tremendous transformation in the past decade, given how c-stores are upping their game with loyalty programs and dynamic content at the pump. What, in your opinion, has been the biggest aspect of that transformation in the past decade?

A.The most significant change we've seen in convenience store shopping over the past decade is the increased personalization within loyalty. C-store retailers can now leverage AI-driven technology to offer tailored promotions based on customer preferences, and this shift is essential for c-stores to generate the shopping activities they need in order to stay competitive. Especially as economic pressures continue, consumers are increasingly expecting to see rewards from their loyalty programs, and creating custom experiences only enhances this value.

Q. What should c-stores be doing to enhance the shopping and fueling experience — and what, in your view, are some of the most exciting developments?

A. To enhance the shopping and fueling experience, there are a few key strategies c-stores can focus on. First, making sure fuel and in-store rewards are integrated through a unified POS system allows customers to accumulate rewards seamlessly, encouraging loyalty and improving the overall shopping experience.

Additionally, convenience retailers can elevate the customer experience by introducing unique product assortments, cafés, restaurants and prepared food options in their stores to create convenient and engaging touch points for consumers. Enabling mobile payments is another crucial aspect of servicing shoppers, as it streamlines order processing, pre-ordering, checkout and contactless payments for consumers on the go.

Q. Why is customer loyalty so vital for c-stores at this point and what should c-stores be doing and not doing?

A. Customer loyalty is crucial for c-stores due to the growing amount of time people are spending there. For example, with EV drivers spending extended periods at c-stores while their cars charge, there's a unique opportunity for c-stores to offer a better experience for these customers and foster loyalty. Furthermore, as the holiday season approaches, c-stores often serve as essential stops for travelers visiting family and friends, making it vital for these businesses to have established loyalty programs in place to delight customers and encourage repeat visits.

C-stores should invest in comprehensive loyalty programs that encompass all types of transactions, both at the pump and in-store. These programs should connect with their customer in the way they like to interact, mobile, card-based, at the register, and more, and should use data and customer insights to offer personalized recommendations, enhancing the value for each customer by suggesting products or promotions aligned with their preferences.

What c-stores shouldn't do is rush to implement this new technology without keeping their specific customers in mind. C-stores must ensure a user-friendly and seamless experience for loyalty programs every step of the way, from sign-up to reward redemption. Understanding the specific needs and preferences of their target audience is crucial, and leveraging insights from the right data can help tailor loyalty initiatives effectively.

Q. There's been lots of advancement at the c-store pump with delivery of new content to gas customers and using that point of interaction to move the customer into the store aisles. What works and what doesn't?

A. C-stores have made significant strides in personalizing customer interactions at the pump and driving them into the store aisles, particularly through the integration of enhanced ordering and payment technology. For instance, a unified POS system allows customers to conveniently order food at the pump, enhancing overall convenience and encouraging in-store visits. However, what doesn't work is maintaining a siloed approach to these touch points, which is hindered by legacy POS systems incapable of supporting the smooth integration of these customer interactions. To maximize success, c-stores need to ensure a cohesive and frictionless experience for customers bridging the gap between the pump and in-store offerings.